Creative ways to being investing in 4-Plexes(Questions)

[Nick Seville]

Hello,

I'm new to the Bigger Pockets forums. This is a great community and I appreciate all of the knowledge that has been accumulated here.

I am looking to begin investing, specifically into 4-Plexes. I'm trying to determine an optimal process for acquiring units and I wanted to get opinions / suggestions. Below is my scenario:

• Married with a high savings rate (low actual savings due to channeling this into debt repayment. We currently carry a low amount of debt with sub 4% rates).
• We bought a single family home in late 2014. My wife isn't currently interested in selling the house so utilizing a owner occupied FHA or conventional mortgage isn't in the cards for me. This leaves obtaining an conventional mortgage with a 20% down payment.
• At our savings rate I would be able to pull the trigger on a deal if I found a suitable one in my area (within my target purchase price range / criteria and with a decent reserve on hand) by the end of 2017. I would be able repeat this process yearly barring any unforeseen expenses.

I have a good friend (I've known him since we were kids and he is also my wife's Cousin) whom does not own property currently, he rents an apartment. He may be interested in partnering with me in Real Estate investing. I suggested to him that if we were to partner together, we could utilize FHA or 5% conventional loans to expedite the acquisition process. We would:

• Buy a 4-Plex with 5% down. He would live in one of the 4 units for 1 year at which time we would look to obtain the second unit.
• Eventually we would have enough overflow on off years to obtain an additional property.
• Continue this until he would hit the maximum amount of loans he could have in his name at once.

Additional information (I am very early in the process of considering the partnership so several details would need to be fleshed out):

• I would be putting most or all of the money into the deals. The split would have to be discussed. It is an interesting issue due to me having the money on the line and he would have his credit on the line.
• He is the son of a plumber and has extensive maintenance experience. He would be able to handle general  / minor maintenance for the buildings.

So my main questions are these:

• Would you invest on your own and wait, or pursue the partnership?
• The loans would need to be in his name I presume. Is there a good way to structure this through a partnership or LLC so we could both be on the loan and still obtain the benefits of a low down payment through being owner occupied?
• Assuming the loan would have to only be in his name, what is the best way to get the money into the deal, would taxes be an issue here?
• How do I get my "stake" in the property documented?

Thank you all very much in advance for taking the time to read and respond to this. I appreciate any and all advise given.